Determine the three mutually exclusive alternatives below. If the MARR is 2% per year, which alternative (if any) should be chosen? Clearly state your assumptions.
|
Alternative
|
X
|
Y
|
Z
|
|
Capital Investment
|
$300,000
|
$425,000
|
$500,000
|
|
Annual savings
|
$68,750
|
$108,750
|
$188,750
|
|
Salvage value
|
$90,000
|
$125,000
|
$140,000
|
|
Life, years
|
10
|
20
|
5
|